Introduction ASDA’s mission is ‘to be Britain’s best value retailer exceeding customer needs, everyday’. This is backed by its purpose - ‘to save everyone money, everyday’. ASDA recognises that these depend on a commitment always to put customers first in everything ASDA does, which is achieved through dedicated teams of ASDA colleagues. ASDA is a private limited company, with its Home Office (Head Office) in Leeds. ASDA shares a common culture with its parent company, the US retailer Walmart and puts value for money at the heart of its operations. ASDA’s beliefs (also known as values) are lived and communicated to all colleagues and reflected in everything the business does. ASDA is always at the heart of the community, often with many generations of a family working at the same store. ASDA also supports a strong corporate social responsibility (CSR) ethos. This is shown through its employment and career opportunities in communities, its support for customers through low prices, as well as charity activities and health initiatives. ASDA is recognised nationally for its low prices and warm and friendly service. The business has over 500 stores across the UK and Northern Ireland, including large Supercentres and Superstores as well as smaller supermarkets found in towns and suburbs. ASDA has seen significant expansion over the last few years. As well as offering food and general merchandise, ASDA has diversified into optical and pharmaceutical services, as well as mobile phone and financial services, with more categories launched each year. There are 25 ASDA Living stores for non-food merchandise, two Home Shopping stores supporting the online shopping service and 27 Distribution centres. The George brand overtook Marks and Spencer in 2009 to become the UK’s leading fashion retailer by volume. ASDA’s customer base has increased through its online services, www.asda.com and ASDA Direct. ASDA’s training and development programmes help its colleagues and managers to grow to meet these challenges. ASDA is an equal opportunities employer. It supports young people with careers in retail, for example, its ‘Flying the Flag’ programme offers work experience at ASDA for young people for one or two weeks each year. Curriculum Topics • Training & development • Identifying training/ development needs • Costs and benefits • Career progression GLOSSARY www.thetimes100.co.uk Mission: Overall purpose and direction for an organisation. Culture: Set of assumptions, beliefs and patterns of behaviour characteristic of an organisation or group of people. Corporate social responsibility: Responsibility of a company to be a fair and positive force for good in the local community. Diversified: Widening a firm's scope across different products and market sectors to spread business risk. www.thetimes100.co.uk ASDA | Meeting business needs through training and development 21 Meeting business needs through training and development
Transcript
Introduction
ASDA’s mission is ‘to be Britain’s best value retailer exceedingcustomer needs, everyday’. This is backed by its purpose - ‘tosave everyone money, everyday’. ASDA recognises that thesedepend on a commitment always to put customers first ineverything ASDA does, which is achieved through dedicatedteams of ASDA colleagues.
ASDA is a private limited company, with its Home Office (Head Office)in Leeds. ASDA shares a common culture with its parent company,the US retailer Walmart and puts value for money at the heart of itsoperations. ASDA’s beliefs (also known as values) are lived andcommunicated to all colleagues and reflected in everything thebusiness does.
ASDA is always at the heart of the community, often with manygenerations of a family working at the same store. ASDA alsosupports a strong corporate social responsibility (CSR) ethos.This is shown through its employment and career opportunities incommunities, its support for customers through low prices, as wellas charity activities and health initiatives.
ASDA is recognised nationally for its low prices and warm andfriendly service. The business has over 500 stores across the UK andNorthern Ireland, including large Supercentres and Superstores aswell as smaller supermarkets found in towns and suburbs. ASDA hasseen significant expansion over the last few years. As well as offeringfood and general merchandise, ASDA has diversified into opticaland pharmaceutical services, as well as mobile phone and financialservices, with more categories launched each year.
There are 25 ASDA Living stores for non-food merchandise, twoHome Shopping stores supporting the online shopping serviceand 27 Distribution centres. The George brand overtook Marksand Spencer in 2009 to become the UK’s leading fashion retailerby volume. ASDA’s customer base has increased through itsonline services, www.asda.com and ASDA Direct. ASDA’s trainingand development programmes help its colleagues and managersto grow to meet these challenges.
ASDA is an equal opportunities employer. It supports youngpeople with careers in retail, for example, its ‘Flying the Flag’programme offers work experience at ASDA for young peoplefor one or two weeks each year.
Curriculum Topics
• Training & development
• Identifying training/
development needs
• Costs and benefits
• Career progression
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Mission: Overall purpose and directionfor an organisation.
Culture: Set of assumptions, beliefsand patterns of behaviour characteristicof an organisation or group of people.
Corporate social responsibility:Responsibility of a company to be a fairand positive force for good in the localcommunity.
Diversified: Widening a firm's scopeacross different products and marketsectors to spread business risk.
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Meeting business needs through training and development
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Each store ‘adopts’ two local secondary schools to encourageyoung people to consider a career in retail. Each store has aCommunity Colleague that works in the local community. He or sheregularly visits schools to talk about the retail sector and their ownexperiences of working at ASDA, as well as the varied andnumerous career options available. The company providesdevelopment opportunities to enable ASDA colleagues to reachtheir potential, whether as a manager in store or taking a place inthe boardroom, regardless of their starting point.
ASDA employs over 170,000 colleagues and rewards longservice. It focuses on developing an accessible ‘family’atmosphere in the stores. This provides a platform for long-termcareers as colleagues develop within the business. Around 80%of ASDA managers began their careers in its stores.
This case study focuses on how ASDA’s training and developmentprogrammes enable its General Store Managers (GSMs) to developthe skills and experience they need to become the RegionalOperations Managers (ROMs) and senior leaders of the future.
Training and development
Training involves acquiring new skills and knowledge in relation to acurrent role. Development relates to a person’s potential to acquirewider capabilities. ASDA uses both to support its mission and tobenefit the business and colleagues. The retail sector offers along-term career path. By developing colleagues with the potential tobe GSMs, ASDA has put in place a robust long-term successionplan to develop the ROMs of the future.
GSMs are like managing directors – many have responsibility for500+ colleagues and sales turnover of over £1 million a week.They need to be able to demonstrate a wide range of behavioursand technical skills. They are responsible for:• leadership – leading their store teams• celebrating achievement and managing under-performance,
supporting improvement where needed• coaching and developing colleagues and managers• setting goals and agreeing priorities by responding to change
and spotting opportunities • being a role model for the ASDA Way of Working - an approach
whereby all colleagues are engaged and involved in improvingthe business – through inspiring and coaching others.
ASDA uses both on-the-job and off-the-job training to developcolleagues at all levels. As a GSM begins their transition to a ROMrole, they need to complete several different types of activities.
On-the-job, GSMs begin to experience the ROM role in order toput their skills into practice. On-the-job activities account for 80%of their development and it is up to the individual to drive theirown development opportunities. Examples include:• covering their ROM’s duties when they are on holiday• receiving guidance from a mentor on the Retail Board (a senior
manager)• attending meetings on behalf of the ROM• owning regional projects.
Off-the-job, GSMs develop the skills needed to be a ROM throughmodules and a series of external coaching. These account foraround 20% of the overall development:• ‘Being at my Best’ – this programme focuses on emotional
intelligence and supports GSMs to understand their strengthsand areas for development.
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Succession plan: Training anddeveloping individuals to take overleadership roles when existing seniormanagers retire or leave.
Coaching: A colleague or externalperson provides advice and sharesexperience.On-the-job training: Trainingundertaken within the organisationwhilst in the course of doing the job.
Off-the-job training: Trainingundertaken away from the workplace,e.g. block release at college.
Mentor: An experienced and trustedcolleague gives advice andencouragement to another colleague.
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• ‘Multi-site coaching’ – improves an individual’s capability tocoach across the range of GSMs using different coachingconversations and styles.
• ‘Influencing across the business’ – provides an opportunity tolearn how to communicate in a compelling way.
• ‘Thought Leadership’ – develops the capability to lead a teamthrough innovation, creative thinking and leading with courage.
• GSMs also receive telephone coaching to support them andaddress development needs.
Costs and benefitsof training and development
Even in tough economic times, ASDA takes the long-term viewthat investment in training and development is the right thing todo both for the business and its people. ASDA has dedicatedStores of Learning (SOLs) across the company. These are storeswhich serve as centres of excellence for technical and behaviouraltraining. Appropriate investment in training and developmentincreases retention of colleagues and leads to higher performingand productive teams, which in turn support ASDA's growth andexpansion plans.
The key benefits of ASDA’s training are seen in:• increased colleague productivity - where customers are served
and satisfied more quickly. This improves colleague efficiency,reduces costs and leads to higher profitability.
• the quality of ASDA’s well trained colleagues. A pleasurableshopping experience means customers are more likely to returnto the store to shop. This gives ASDA a competitive advantage.
• high morale which leads to a more motivated team. Ifcolleagues are motivated to develop there are manyopportunities open to them. The resulting sense ofachievement that colleagues convey in their work contributesto a positive corporate image.
• ASDA aims to fill 80% of appointments through internalpromotion.
Wendy is an ASDA colleague who developed from a GSM to ROMrole. This is her view of what working at ASDA is like.‘It’s dynamic, fast-paced and challenging. I’m given all the space Ineed to do things my way, which I find really inspiring.
Of course, we have a framework that we all work to, but it is veryflexible, so I never feel constrained at all. In fact, this is one of thereasons I joined ASDA in the first place. My first role was as GSMfor a failing store in Kent. I devised a three-month plan - ‘ProjectPhoenix’ - to turn the whole store around. When I started, weachieved a score of just 56% at our audit; three months later andwe were at 95% - a brilliant example of success when everyonepulls together. I am now a Regional Operations Manager for Kent.At ASDA, if you put in the work, the reward and progression isdefinitely available.’
Progression routes
There are many different roles within ASDA, from shop floorcolleagues and specialist roles like bakery, to fashion buyers andlawyers. The career path shown is for a GSM who wants to developto a ROM. Working in several different stores provides GSMs withthe experience and background to operate effectively in a ROM role.
Mark, a GSM who has recently opened a new ASDA store inCumbria, says: ‘I joined ASDA as a shop floor colleague in 1990.I knew nothing about retail but my Careers Advisor suggested Iapply to ASDA as it looked an exciting place to work. I believethat the development programmes here have been a key part ofmy career progression. I have been a Grocery colleague, a NightManager, a Training Manager and a Project Manager at our HomeOffice in Leeds. I became a GSM about three years ago. Sincethen I have developed personally and professionally throughworking as a store manager in three different stores.’
Prior to becoming a GSM, all managers will usually work as anAmbient Trading Manager or Fresh Trading Manager. These rolesare responsible for the whole range of food trading, homeshopping and warehousing within a store. This on-the-jobexperience gives colleagues a better insight into the complexitiesof the business. They become aware of all aspects of the store,not just the management issues. For example, the warehousingexperience is very important in order to learn first-hand thepracticalities of effective stock control. This enables prospectiveGSMs to understand the implications of efficiently managing costsand minimising wastage.
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First appointment to GSM role
Second appointment e.g. GSM of new store
Third appointment e.g. GSM of complex store or supercentre
Further development role e.g. a project role
Stepping up to ROM
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Another ASDA colleague, Kieran, started as a Retail Graduatewith ASDA and has now progressed to a ROM role. He says:‘I was working at ASDA whilst studying for a degree in Law so Iapplied to the ASDA graduate scheme. After my initial training, Istarted as a Home & Leisure Manager. I then moved arounddifferent roles before becoming a Senior Manager. A year later Imoved into ASDA House (Home Office) to work as Project Managerto the Chief Executive. A year after moving back into retail andrunning my own store, I became Regional Availability Manager.ASDA lets managers take risks on people and gives them a chance– with the right support you can go very far, very fast. Retail is opento all, and if you have the right attitude, work hard and deliver, youwill get on. How quickly or how far is up to you.’
ASDA offers a personalised approach to developing skills andleadership behaviours. Colleagues have the chance to experiencedifferent business environments, perhaps in a Supercentre,Distribution Centre or in a role in Home Office (Head Office). At alllevels, including moving from a GSM to a ROM role, developmentmust be driven by the colleague and relies on individual activityand personal motivation. ASDA colleagues must takeresponsibility for their personal development.
Identifying trainingand development needs
Identifying skills and development opportunities for senior roles isessential to maintain leadership succession. ASDA’s aim is ‘to ensurewe identify and create a robust internal succession plan to developour internal talent’. It therefore provides a visible and structured careerpath for its GSMs, backed up by technical and behavioural training.
ASDA runs Development Days with its senior managers to identifywhere their development opportunities are. These consist of manydifferent activities such as business simulations, presentations and indepth interviews. ASDA also uses psychometric tests, 360-degreeLeadership Surveys, 1-1 diagnosis with line managers and annualappraisals to help identify development needs. It is essential thateach person's development plan is 'fit for purpose' and tailored toindividual requirements.
These tools help ensure that the investment ASDA makes intraining and development helps the business achieve itsobjectives. All training and development should contribute toimproving ASDA's overall business performance. The GSM-ROMprogramme is designed to provide a structured yet flexibleapproach to developing a career path. The programme fits arounda GSM's own personal experiences and current technical andbehavioural skills. This aligns his or her career development pathto meet and overcome the challenges of their store.
A GSM’s performance is measured equally on both outcomes(the ‘what’) and behaviours (the ‘how’). One of the ways these areassessed is through feedback from other colleagues. This processfocuses on Likes, Concerns and Suggestions (LCS) and ensuresthat feedback is always constructive.
Once training needs are identified these are managed throughvarious programmes, such as store visits, Line Manager coaching,off-the-job modules, coaching calls and mentoring.
Conclusion
ASDA’s tailored and personalised approach to training anddevelopment provides a strong foundation to meet its current andfuture leadership needs. The company plays to individuals’strengths and offers various channels through which they candevelop. This produces ASDA colleagues who are committed tothe success and expansion of the business.
By promoting and supporting progression at all levels, ASDA enablesits colleagues to focus on ‘being at their best’ and growing within thecompany. The results are increased morale, quality of work, higherproductivity, and in the long-term, increased colleague retention andprofitability. In this way, everyone in the company delivers the higheststandards of service to meet ASDA’s objectives and help thebusiness to reach its goals.
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Motivation: Attracting a person to dosomething because he or she wants todo it.
Psychometric tests: A set ofquestions which, when analysed,suggest an outline of a job applicant'spersonality or ability.
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QU
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1. Describe the difference between training and
development. Why might both be needed?
2. Explain why colleague retention is important to ASDA.
3. Use the ASDA colleagues’ profiles to analyse why
training and development adds value to the business.
4. Evaluate the various methods that ASDA uses in its
